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North Korea threat not recorded through US asset prices: Evidence from events in the 21st century
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School of Business |
Bachelor's thesis
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Degree programme
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en
Pages
29
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Abstract
I perform event data analysis on the hostile events of North Korea affecting United states asset prices. I examine the effect of these events to US asset prices through local increment of political uncertainty and increase in patriotism. US have been under North Koreas nuclear threats and the North Korea have been estimated by experts to be able to finally fit the nuclear warhead in the missile which could hit the US coast. In recent year the subject has also been widely covered in international media. I don’t find significant effects on U.S. asset prices during the events thus concluding that the threat posed by North Korea is not taken seriously by U.S. markets. This is aligned with former papers examining the effects in South Korea and North Korea concluding that the threat is not realistic. (Kim and Roland 2014)